Labelbox has successfully raised $188.9 million over five funding rounds, achieving a valuation of over $500 million. The platform is a leading data-centric AI solution, enabling teams to leverage the latest advances in generative AI and large language models with the right mix of human supervision and automation.
Keep reading to explore the intricacies of Labelbox's fundraising journey and the investors backing this innovative platform.
What Is Labelbox?
Labelbox, founded by Manu Sharma and Brian Rieger, is a data-centric AI platform that helps teams build intelligent applications. Established in 2018, the company operates from Miami, New York City, and San Francisco.
With a workforce of 51-200 employees, Labelbox provides a comprehensive set of data solutions, including managed labeling services and a platform for building data factories. Their offerings support custom and foundation models, aiding major enterprises like Walmart and Adobe.
Labelbox's mission is to enable AI teams to generate quality data at scale, leveraging human supervision and automation to enhance AI projects. The platform is widely used by Fortune 500 companies and leading AI teams.
How Much Funding Has Labelbox Raised?
- Seed Round
- Amount Raised: $3.9 million
- Date: July 30, 2018
- Lead Investors: Kleiner Perkins, First Round, Google's Gradient Ventures
- Motivation Behind the Round: To emerge from stealth mode and expand their software capabilities to meet the growing demand for AI training data solutions.
- Series A Round
- Amount Raised: $10 million
- Date: April 9, 2019
- Lead Investors: Gradient Ventures
- Motivation Behind the Round: To double the team size and build out sales and marketing teams, enhancing support for machine learning teams with advanced features.
- Series B Round
- Amount Raised: $25 million
- Date: February 4, 2020
- Lead Investors: Andreessen Horowitz
- Motivation Behind the Round: To build the Training Data Platform and support AI software development by providing infrastructure for high-quality training data management.
- Series C Round
- Amount Raised: $40 million
- Date: February 11, 2021
- Lead Investors: B Capital
- Motivation Behind the Round: To enhance the platform's functionality, making training data and AI development faster and easier, and to establish Labelbox as the standard platform for AI breakthroughs.
- Series D Round
- Amount Raised: $110 million
- Date: January 6, 2022
- Lead Investors: Softbank’s Vision Fund II
- Motivation Behind the Round: To accelerate the development and distribution of Labelbox's AI training data platform, enhancing tools and technologies to support production AI applications.
Total Amount Raised: $188.9 million. Current Valuation: Over $500 million.
Key Investors
- SoftBank
- Details: SoftBank is a global technology investment firm known for its Vision Fund, which invests in technology companies. The firm has a significant presence in the tech industry, backing some of the most influential companies worldwide.
- Investment Focus Areas: Technology, AI, robotics, telecommunications, e-commerce.
- Notable Investments: Uber, WeWork, Arm Holdings, Alibaba.
- Andreessen Horowitz
- Details: Andreessen Horowitz is a venture capital firm that backs bold entrepreneurs building the future through technology. The firm is known for its visionary investments in iconic companies.
- Investment Focus Areas: Software, consumer, enterprise, bio/healthcare, crypto, fintech.
- Notable Investments: Facebook, Airbnb, Slack, Coinbase.
- B Capital
- Details: B Capital is a global investment firm that partners with extraordinary entrepreneurs to shape the future through technology. The firm focuses on investing in transformative companies across various stages of growth.
- Investment Focus Areas: Enterprise software, fintech, healthcare, consumer enablement.
- Notable Investments: Bird, Evidation Health, Atomwise.
- Gradient Ventures
- Details: Gradient Ventures is Google's AI-focused venture fund that invests in early-stage startups. The fund aims to advance the field of artificial intelligence by supporting innovative companies.
- Investment Focus Areas: Artificial intelligence, machine learning.
- Notable Investments: Algorithmia, Labelbox, Cape Analytics.
- Databricks Ventures
- Details: Databricks Ventures is the investment arm of Databricks, focusing on data and AI startups. The firm leverages its expertise in data analytics to support the growth of innovative companies in the AI space.
- Investment Focus Areas: Data analytics, AI, machine learning.
- Notable Investments: DataRobot, Fivetran, dbt Labs.
What's Next for Labelbox?
Labelbox stands at the cusp of a significant opportunity, driven by the rapid advancements in AI and the increasing demand for high-quality training data. With the $110 million Series D financing, the company is well-positioned to accelerate the development and distribution of its AI training data platform. The potential for growth is vast, as Labelbox continues to expand its customer base among enterprises and startups, introducing innovative features like model-assisted labeling automation and active learning.
Future fundraising opportunities appear promising, given the successful Series D round and the involvement of high-profile investors like Softbank’s Vision Fund II and Databricks Ventures. This momentum could pave the way for additional funding rounds to support further growth and innovation. However, Labelbox may face challenges such as ensuring data quality, competing with other AI training data platforms, and keeping pace with the rapid advancements in AI technology. Despite these hurdles, the company's strategic positioning and robust investor backing suggest a bright future ahead.
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